July 31, 2018

Megaworld expand to horizontal residential project acquires Stateland

NEWS

MEGAWORLD Corp. is ramping up its land bank in Cavite and Laguna with the acquisition of a South Luzon-based real estate firm through one of its subsidiaries. In a statement issued Tuesday, Megaworld said its wholly owned unit Suntrust Properties, Inc. recently acquired Stateland, Inc. The financial details of the deal were not disclosed. The 42-year old Stateland has existing developments covering over 200 hectares primarily in Cavite and Laguna, as well as some parts of Metro Manila.

Residential demand in areas outside Metro Manila is partly driven by OFW remittances. Money sent in by Filipino workers has been growing by about 4% to 5% annually. Cavite and Laguna are part of Region IV, which is among the major sources of remittances. Colliers believes that developers will continue to venture into residential projects in second-tier and third-tier cities all over the country, where demand comes from end-user buyers. The markets may be smaller compared to Manila but more stable in terms of end user housing demand.

Wellness-focused Maayo Hotel opens in Cebu

NEWS

Maayo Hotel and Well complex, Cebu's first 4-star hotel and wellness centre is a first in the Philippines medical tourism industry, combining hotel services, state-of-the-art integrative medicine and aesthetic services in one facility. Maayo Hotel has 229 guest rooms, several function rooms, a gym and spa, an infinity pool with a panoramic view of the city, an outdoor jogging trail, and a space for yoga.

Local and national hotel developers should consider building health clinics and retirement facilities alongside hotels to capture the growing number of foreigners retiring in the country. Colliers believes that the concept of medical facilities being built alongside hotels should become more popular in key destinations across the country as the Philippines’ traditional visitor markets – China, South Korea, and Japan – have ageing demographics.

World Bank keeps PH growth forecast

NEWS

Despite worrisome global uncertainty, the World Bank has maintained its growth forecast for the Philippines on the back of strong public investments and the expected increase in consumer demand ahead of the elections next year. WB said the country’s economy, as measured by its Gross Domestic Product (GDP), may expand by 6.7 percent this year and in 2019 amid uncertain global conditions.

The Philippines remains as one of the fastest-growing economies in Asia. Moving forward, much of the country's growth will hinge on ramped-up infrastructure spending, which should support the Duterte administration's commitment to build crucial projects throughout the country. Colliers sees the country sustaining robust growth on the back of the government’s infrastructure and decentralization push. Among the key economic segments that will benefit from the government’s thrust is property development. Infrastructure implementation coupled with decentralization should spur the growth of office, residential, retail, industrial, and hotel & leisure segments.